Apple: Q3 View Could Be ‘More Conservative,’ Says Pac Crest

By Tiernan Ray

Pacific Crest analyst Andy Hargreaves this morning writes that Apple’s (AAPL) forecast for fiscalQ3 ending in June could be “more conservative than usual” when the company reports Q2 earnings next month given the turmoil in Japan.

Based on an expectation of iPad sales of 6.2 million units in Q2, the quarter’s EPS should be well ahead of expectations, he projects, at $5.61 per share versus the consensus $5.30, on revenue of $23.14 billion, he estimates, versus the consensus $23.11 billion.

However, “We believe supply disruptions in Japan have left the channel with as little as two months of inventory of key components for iPad and iPhone,” writes Hargreaves. “If supply is not brought back online quickly and Apple is unable to find alternatives, then iPad and iPhone production could be meaningfully impaired in the second half of fiscal Q3.”

Hargreaves reiterated an Outperform rating on Apple shares and a $420 price target.

Apple shares this morning are down 77 cents at $349.67.

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